Daimler Buses on the upswing: Growth and efficiency program GLOBE2013 is having an effect

[Daimler AG - 04.09.2013] Daimler Buses on the upswing: Growth and efficiency program GLOBE2013 is having an effect

Operating result is back in the black; market position strengthened
Good prospects for full-year 2013: increasing capacity
First bus manufacturer to offer a complete range of Euro VI-compliant vehicles
Highlight of the product offensive: the new coach generation Setra TopClass 500
BusStore: A new brand for used vehicles
New partner Wrightbus in India
Daimler Buses on the upswing, in the run-up to the Busworld motor show in Kortrijk, Belgium (October 18-23), Daimlers bus division is reporting a positive operating result for the second quarter as well as rising sales figures and an increase in incoming orders, even though the market continues to be challenging. Moreover, production capacity is improving at the divisions European plants. As a result, the outlook for the year as a whole is cautiously optimistic.
Simultaneously, Daimler Buses is demonstrating its technological lead even in economically difficult times, as it has become the first manufacturer to switch all of the model series of its Mercedes-Benz and Setra brands in Europe to the upcoming Euro VI emissions standard. Demand will also be boosted by new model series.
Operating result is back in the black; market position strengthened
The GLOBE2013 program that Daimler Buses launched last year is beginning to have an effect. The resulting increase in sales and efficiency has pushed Daimler Buses back into the black. In the second quarter, the division posted EBIT of €27 million, thus almost completely offsetting the loss recorded in the first three months of the year. EBIT totaled -€4 million in the first half of 2013, compared to -€164 million in the same period of last year. The divisions revenues amounted to €1.685 billion, compared to €1.746 billion in the first half of 2012. Daimler Buses sold a total of 13,946 chassis and complete vehicles (January-June 2012: 13,314). In the market for buses over 8 tons GVW, Daimler Buses strengthened its leading position in Germany (54.1 percent market share) and in Western Europe (29.8 percent).
"We are on the upswing, says Hartmut Schick, Head of Daimler Buses. "Our operating result was back in the black in the second quarter of 2013. This improvement was primarily driven by our chassis business in Latin America. However, our business with complete buses in Europe is also slowly moving back into positive terms. Despite facing a very challenging environment, we made our division sustainably more efficient without losing sight of the key preconditions for ensuring future growth with new technologies and new products.
Cautious optimism for full-year 2013
The outlook for the year as a whole is cautiously optimistic. Incoming orders are substantially higher than they were in the same period of last year. The rising number of orders is also increasing production capacity at the European plants. As a result, the company is already planning to have employees work more than ten Saturday shifts in Mannheim and Neu-Ulm during the second half of the year.
Several major new orders have contributed to this increase. For example, Wiener Linien have ordered 217 Mercedes-Benz Citaro, 172 Citaro will be supplied to the Belgian capital of Brussels, and 132 Citaro will be sent to the Dutch transportation company Qbuzz. Moreover, the Austrian federal railway company ÖBB has ordered a total of 390 units of the Mercedes-Benz Citaro and Intouro models and the Setra MultiClass series. Daimler Buses has also placed successful bids for tenders outside Europe. For example, the company is now successively supplying 2,600 school buses and 520 city buses to São Paulo and Fortaleza in Brazil, while Johannesburg, South Africa, will receive 134 Mercedes-Benz chassis.
First bus manufacturer to offer a complete range of Euro VI-compliant vehicles
In addition, Daimler Buses plans to achieve a better EBIT result than in 2012. The division is the worlds first manufacturer to offer its complete range of Mercedes-Benz and Setra brand vehicles in accordance with the Euro VI emissions standard, which will become mandatory in the EU beginning in January 2014.
"The success of our technology initiative speaks for itself, says Schick. "Daimler Buses will have delivered around 1,700 Euro VI-compliant vehicles in Western Europe by the end of the year. We are thus putting more Euro VI-compliant buses on the road than all the other manufacturers combined. Almost one third of the city buses that are currently being ordered from us are Euro VI-compliant vehicles.
In the complex transition to the Euro VI standard, Daimler Buses has not only installed additional exhaust treatment technology in the vehicles but also introduced new engines and powertrains that have turned the expected increase in fuel consumption into a substantial reduction. This decline in fuel consumption has been demonstrated in several independent tests. The developers have also offset the added weight of the extra technology. In addition, Daimler Buses decided to take advantage of the switch to the Euro VI standard to create completely new constructions. Examples of this include the Mercedes-Benz Citaro and the Setra ComfortClass 500.
Highlight of the new product offensive:
the new Setra TopClass 500
The most recent high point of the renewal of the product range is the new Setra TopClass 500, which will celebrate its public debut at Busworld Kortrijk in late October. The look and technology of the new TopClass are setting the standards for luxury-class travel coaches. The new Setra TopClass 500 is a veritable milestone, as is demonstrated, for example, by its new SkyView glass roof, the vehicles unprecedented aerodynamics (0.33 Cd value), the driver area that is perfectly adapted to the vehicle operator, and Predictive Powertrain Control (PPC) — a cruise control system that enhances fuel efficiency and that is without parallel in the bus sector.
Mercedes-Benz will also present numerous new developments in the fall of 2013. The focus will be on the completely updated model range of the best-selling Citaro city bus, the attractive new Tourismo K midibus, and the expanded and upgraded family of the especially economical Intouro intercity bus. Last but not least, Mercedes-Benz will also be offering the first minibuses that comply with the new Euro VI emissions standard. These vehicles are based on the new Mercedes-Benz Sprinter.
"All of this shows that Daimler Buses is once again presenting the very best in technology, comfort, and design, says Schick. "We offer our customers the ideal combination of first-rate products and top-class service.
Cooperation with Wrightbus
Daimler Buses is also successfully enhancing its global position. In India, it recently gained Wrightbus as a new partner for the long-term exploration of this promising growth market.
BusStore: New brand for marketing pre-owned vehicles
Daimler Buses has also intensified the marketing of used vehicles, and it will now offer used buses through its BusStore brand. This brand will consolidate the companys entire used bus business in a Europe-wide network. Customers will now be able to choose from a far wider selection of used vehicles from Mercedes-Benz, Setra, and all other common brands. All of the vehicles will be checked to ensure that they meet high quality standards.
About Daimler
Daimler AG is one of the worlds most successful automotive companies. With its divisions Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services, the Daimler Group is one of the biggest producers of premium cars and the worlds biggest manufacturer of commercial vehicles with a global reach. Daimler Financial Services provides financing, leasing, fleet management, insurance and innovative mobility services. The companys founders, Gottlieb Daimler and Carl Benz, made history with the invention of the automobile in the year 1886. As a pioneer of automotive engineering, Daimler continues to shape the future of mobility today: The Groups focus is on innovative and green technologies as well as on safe and superior automobiles that appeal to and fascinate its customers. For many years now, Daimler has been investing continually in the development of alternative drive systems with the goal of making emission-free driving possible in the long term. So in addition to vehicles with hybrid drive, Daimler now has the broadest range of locally emission-free electric vehicles powered by batteries and fuel cells. This is just one example of how Daimler willingly accepts the challenge of meeting its responsibility towards society and the environment. Daimler sells its vehicles and services in nearly all the countries of the world and has production facilities on five continents. Its current brand portfolio includes, in addition to the worlds most valuable premium automotive brand, Mercedes-Benz, the brands smart, Freightliner, Western Star, BharatBenz, Fuso, Setra and Thomas Built Buses. The company is listed on the stock exchanges of Frankfurt and Stuttgart (stock exchange symbol DAI). In 2012, the Group sold 2.2 million vehicles and employed a workforce of 275,000 people; revenue totaled €114.3 billion and EBIT amounted to €8.6 billion.

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